Multi Asset – Investors don’t need to accept we are in a low return world

The prevailing and overwhelming consensus is that we are in a “low return” world. After all, with negative bond yields prevailing in many parts of the globe and extended structural valuations evident in key equity markets, it is empirically difficult to see how many markets could deliver decent size, positive returns. This seemingly universal agreement around the inevitability of enduring low returns is problematic. It is absolutely true that for many assets current valuations make the achievement of high returns difficult. This is particularly the case for fixed income assets, where low to negative policy rates, low / negligible / negative bond yields effectively guarantee poor returns over the medium term. Likewise there have been lots of assets priced off these low / negligible / negative yields. What’s less certain though is how long low returns will prevail. In other words, it is far from true to say that we are in an enduring low return environment. History shows that market risk premium can reprice quickly and aggressively. We discuss this in “Real Matters – Best Avoid Landmines” (VIEW LINK)

Established in 1961, Schroders in Australia is a wholly owned subsidiary of UK-listed Schroders plc. Based in Sydney, the business manages assets for institutional and wholesale clients across Australian equities, fixed income and multi-asset and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.